Money serves as a basic yardstick for measuring economic value (a unit of account), allowing:
A. governments to restrict the issuance of private monies.
B. goods and services to be exchanged with a double coincidence of wants.
C. people to hold their wealth in a liquid form.
D. easy comparison of the relative prices of goods and services.
Answer: D
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Which of the following presidents attempted to expand employment during the Great Depression through increased public spending?
A. Harry Truman B. Franklin Delano Roosevelt C. Calvin Coolidge D. Herbert Hoover
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
Explain why the short-run aggregate supply curve is a relatively flat, horizontal line
What will be an ideal response?